Investment Info:
Single-family residence buy & hold investment in Indianapolis.
Purchase price: $215,000
Cash invested: $6,000
This duplex converted into a massive single family is located just north of the new Bottleworks District on North Mass in downtown Indianapolis. Located just a block off of the Monon Bike Trail, I'm able to bike to work IF we ever go back to the office. It's an interesting place for sure with good bones with MANY options for several different rental strategies.
What made you interested in investing in this type of deal?
This house was PERFECT for what I was looking for. I wanted a property that was cosmetically distressed near the Indianapolis Monon Bike Trail just north of Downtown Indianapolis. Additional benefit is that this house could easily be converted into a duplex with 2 small walls and a kitchen slit in the future if I ever need to. But in the meantime I was able to rent 2 of 4 rooms, live in 1 and that pays for the entire mortgage. I love the amount of options I have with such a big space.
How did you find this deal and how did you negotiate it?
I found off the MLS! Odd thing is that the seller was adamant about not having inspection contingencies which scared off a bunch of possible buyers. I fronted that cost to know what I was getting into and also talked to the neighbors to learn that previous tenants were evicted. We found issues with the roof and plumbing that further scared off other buyers but I was able to negotiate these into the vendor credits at closing. All in all, just pressed the right buttons to get the deal done.
How did you finance this deal?
I chose a 30-year fixed mortgage at 3.125% with 3% down. I wanted to ensure I had the cash on hand to convert this property if needed and get a 2nd place immediately to keep the momentum in my early journey going.
How did you add value to the deal?
So far I've added new appliances and paint to the entire house. In the future, we plan to replace the flooring with LVP. Then convert the side lot into a fenced car port and outdoor space. We also have the option down the line to reconvert the home back into a proper duplex to maximize cash flow and reduce vacancy expenses.
Lessons learned? Challenges?
My goodness, as my 1st investment property, I went through the RINGER! Though I see this as a success, at many points, this deal was anything but easy. We learned through necessity what to look for when inspecting a house as I had to front that cost before the offer. When we found issues, I learned I could negotiate vendor credits for issues to be fixed after I get the house, reducing cash needed to purchase. I learned that this is a perseverance game as well. Happy to be a home owner finally!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
YES! My realtor, Sydney Mills of Maywright Property Co is a great friend of mine from back at my first job where she displayed tons of grit and perseverance. Her & her team are very investor friendly where they themselves invest and manage rentals & bnbs locally in Indianapolis. I loved working with her and she was very informative along the way to compliment my gaps of knowledge.
Matt Davis & the team at Caliber Home Loans were extremely responsive and informative. Cannot recommend enough
